Robert's Blog

New Program Launched by Industry Veteran Seeks to Re-Evaluate Perceived “Low” Valued Vehicles

Auto Body News has completed an article pertaining to New Program Launched by Industry Veteran Seeks to Re-Evaluate Perceived “Low” Valued Vehicles.

I have talked many times about the importance of having a unified voice. We as an industry are much more productive and efficient when we work together. One major step forward for this endeavor is the combatant of perceived vehicle value. I work daily to defend this theory and advance this cause.

We must be educated and armed with the facts and evidence to get our claims paid. You cannot persuade someone who is detached from reality. 

We must be visionaries philosophically, and realistic in our actions.

Diminished Value

Diminished Value is defined as that portion of a damaged vehicle's pre-Loss Value that has Not been restored through the repair process. There are actually three (3) basic types of Diminished Value . . .

1. Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Property Damage claims ...
2. Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common “Supplemental” form of Diminished Value is “Repair Related Diminished Value” ...
3. Repair Related Diminished Value includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.

Posted By Mr. J.D. Howard

ABAT Conference on Processes Necessary to Repair Vehicle Speaking Points

I am very proud to be invited to speak (see attached Autobody News ABAT Conference on Processes Necessary to Repair Vehicles 8.31.2015) at the September 2015 ABAT Conference on Processes Necessary to Repair Vehicles. This conference is right in tune with what our company Vehicle Value Experts has to offer Auto Body Association of Texas (ABAT) members, consumers and lenders alike.

 

It is our contention at Vehicle Value Experts the single most deciding factor in the "Process to Repair Vehicles" is in fact "The Vehicle Value."

 

When the Insurance Companies provide Claimants and Body Shops with unsupported Market Vehicle Value Reports with below Market Values everyone looses. When in fact the wrong Vehicle Value is used as a Bench Market as to the deciding factor as to the Collision Repair more times than not the vehicle is deemed a Total Loss and the Body Shop looses the job and the customer.

 

Under our Spoke and Hub Theory (see attached HUB AN SPOKE THEORY) by the claimant and the Body Shop getting Vehicle Value Experts involved early on in the process more vehicles are repaired thus protecting the five profit centers (Body Labor, Frame Labor, Paint Labor & Materials, Parts and Sublet) of the Body Shop as well as keeping the customer.

 

Vehicle Value Experts has developed proprietary software models designed to assist the consumers rights as to Appraisal Clause and Inherent Diminished Value. I have attached for your review Texas Department of Insurance Automobile Insurance Made Easy ACTUAL WEBSITE ARTICLE (focus on the highlighted section on page 11) and Texas Department of Insurance Diminished Value Commissioners Bulletin. I will touch on each of these in detail during my speaking engagement at the ABAT Conference on September 25th.

 

What Vehicle Value Experts has to offer consumers, Body Shops and Lenders is a Proven Tool to combat the wrongful devaluing of Motor Vehicles by the Insurance Companies. Thus allowing more Vehicles to be repaired and ultimate retention of more customers.This is our Mission Statement.

 

Vehicle Value Experts will also cover with the attendees at the seminar a detail insight into Inherent Diminished Value Claims as well as point out The Texas Department of Insurance Bulletin on Diminished Value Claims. 

 

In closing, each and every time a legitimate claim for collision damages is denied, the insurance company rings the cash register at the consumer and Body Shop expense. Together we can detour this by educating our clients and members a like as to the tools available at hand. 

 

Auto Body Association of Texas Collision Day

On Friday August 25th I spoke at Auto Body Association of Texas Collision Day Seminar at the Hilton in Fort Worth. The Seminar guest speakers where Mike Anderson of Collision Advice , Wayne Krause with Mitchell International, Frank LaViola with Enterprise and me. There was a little over 150 attendees at the seminar.

The ABAT Seminar was a great success in my opinion I as well as the group took away many great operational points and information to help me in my day to day business

Mike Anderson had a well thought out message to the group that discussed customer satisfaction, industry news on OEM repair facilities and the steering of collision repair to each and gave many points and ideals as well as a positive message about our industry.

Wayne Krause outlined many areas Mitchell International was working to improve the data and operating system of Mitchell as well as how important communication is with Mitchell to improve their operating system. Mr. Krause committed to improve some of the ambiguous language contained in the software that causes us grieve in day to day operations and claims process as such. Mr. Krause offered the group his personal cell number should an operator have a question and/or point they needed cleared up.

 

Frank LaViola outlined various data formats Enterprise offers the Collision Industry to help track Rental Car usage by their customers on Insurance Claim Related events.